WASHINGTON: US President Joe Biden’s massive stimulus program is expected to boost US economic growth and also help to spur the global recovery, an IMF spokesman said Thursday.
US GDP will expand five to six percent over three years with the injection of $1.9 trillion in aid, according to the International Monetary Fund’s preliminary estimates, and higher demand will help other countries sell more products to American consumers, IMF spokesman Gerry Rice told reporters.
“We see potentially significant positive spillovers in terms of global growth,” he said.
“Most countries should benefit from stronger US demand ... so this will help global growth and recovery.”
However, he cautioned that policymakers should be on the alert for a sudden shift in borrowing rates.